RATE COMPONENTS
CUSTOMER CHARGE
Fixed monthly amount that covers maintenance and repair of meters and other customer-related expenses. This charge does not depend on the amount of electricity used.
ENERGY CHARGE
Covers the cost of operating and maintaining HG&E's electric distribution system. To calculate your energy charge, you can multiple the number of kWh used during the monthly billing cycle by the rate.
DISTRIBUTION CHARGE
These costs are related to the local delivery of electricity to retail customers. Distribution consists of building, operating, and maintaining the local electric system, including substations, transformers, poles, and wires. A distribution system is considered all electric infrastructure at voltages less than 69 kV.
TRANSMISSION CHARGE
These costs are related to HG&E's connection to the New England transmission system, providing the ability to export and import energy. These costs are also related to operations and maintenance of our local transmission system, which is considered all electrical infrastructure greater than 69 kV. HG&E is in a unique position where it owns transmission infrastructure and is able to generate revenue from this ownership, helping to keep costs stable.
PURCHASE POWER ADJUSTMENT
This component of your rate can be a charge or a credit, depending on HG&E's actual power cost as compared to the projected cost of power used to set utility rates. For more information, please see the Department's Standard Purchased Power Adjustment Clause.
HYDROELECTRIC POWER CREDIT
An adjustment in the rate due to power purchased from the Niagara hydroelectric projects. This reduction in rate may be further adjusted based on Department’s owned hydroelectric facilities, at the discretion of the Department from time to time. For billing purposes, this Hydropower Reduction may be combined with and reflected in the Purchased Power Adjustment. For more information, please see Department's Hydroelectric Power Adjustment Clause.
RENEWABLE ENERGY CHARGE
This monthly costs helps fund the Massachusetts Renewable Energy Trust, which helps to establish renewable energy projects in the State of Massachusetts. Participation in the program allows HG&E, and it's customers, the ability to participate in solicitations and grant opportunities. For more information, please visit Massachusetts Clean Energy Center.
PROMPT PAYMENT DISCOUNT
A discount of 10% will be allowed on current gross bills provided the bill, including any arrearage, is paid in full within fifteen (15) days of date of bill and provided that no discount will be allowed to customers having a power factor less than 85%. No economic development discount (EDD) shall apply per Mass DPU 191 G/E to any customers on the Agriculture/Farming or Indoor Cultivation special rates.
INDOOR CULTIVATION DISCOUNT
Persons or corporations primarily engaged in the business of indoor cultivation, who provide verification documentation to the Department, shall receive a discount of 10% from the rates shown above provided and conditioned each month that they have a monthly load factor of 65% or greater (prior to the prompt payment discount). This discount is ineligible if receiving Agriculture/Farming discount. Customers must meet the requirements in discount section of the rate (power factor and prompt payment) in order to qualify for indoor cultivation discount.
POWER FACTOR CHARGE
An additional charge of $.001 per kWh will be added to bills in any month where a lagging or leading power factor, as applicable for such month, of 95% is not maintained. This charge shall increase by an additional $.001 per kWh for each 10% level below that of 95% (i.e., a 70% monthly power factor in either direction would have a $.003 per kWh additional charge). In any month where power factor is both leading and lagging at least 25% of the time, then the Department shall (instead of taking the total kWh netted average) take the lower of the two separate power factor calculations (during lagging and leading times).
RULES & REGULATIONS
The following Rules & Regulations are applicable to all HG&E utility rate schedules. These Rules & Regulations have been established to convey the conditions that you agree to when requesting and receiving services from HG&E.